California wine growers’ responses to labor shortages: Evidence from survey data

Abstract

Abstract California wine faces tightening market conditions, with labor availability an increasingly binding constraint. We examine responses using two surveys: one capturing gradual labor market tightening over 2014–2018, the other isolating enforcement-induced labor loss in 2025. Wine grape growers respond to labor shortages through wage increases and cultivation adjustments, with limited recourse to technology or acreage reduction. Enforcement-induced shocks elicit a narrower set of responses, primarily through reduced production. These patterns are not fully explained by general crop labor intensity, indicating that wine grape producers face greater challenges adapting to labor disruptions than other California farmers, with potential consequences beyond cost increases.